A thing called capacity—and why it could be devastating to our power bills

When CUB threw its support behind the Clean Energy Jobs Act, the watchdog said one of the biggest reasons is an ongoing battle with fossil fuel generators in a special electricity market called the capacity market. If we don’t do something, this could cost most electric customers in the state up to $500 million a year in higher electric bills.

You may not know it, but EVERYONE pays for “capacity” on their electric bills. Here’s what you need to know—and why you should support the Clean Energy Jobs Act.

What is capacity?

Not only do you pay for the power you use now, but you also pay for power you could use in the future. Capacity refers to extra payments consumers give power plant operators for the commitment to have enough electricity available if demand suddenly spikes. (Think of a hot summer afternoon, when everyone blasts the AC.)

The PJM power grid stretches from Illinois to the East Coast.

The price for capacity for ComEd customers is determined through auctions run by PJM Interconnection, the power grid operator for northern Illinois and all or part of 12 other states and Washington, D.C.. (Ameren’s market is run by a different power grid operator.)

How does capacity affect my bill?For most customers, capacity charges are embedded in the electricity supply charge on your power bill. While actual electricity prices have been relatively low in recent years, capacity has become a bigger and bigger part of your bill, and is now roughly 21 percent of the supply charge, according to the Illinois Commerce Commission. (By the way, alternative energy suppliers as well as ComEd buy electricity on this market. So you won’t escape capacity charges by changing suppliers.)

CUB has long said that capacity market rules are stacked against consumers, causing us to pay higher bills for more capacity than we actually need. But a new plan pushed by PJM and fossil fuel generators could make it even worse.

This was is the way it always going to happen. The market shifts after a slow pivot.Then it was going to bust loose suddenly. Clean Energy was going to chase coal all across the globe as it fought a rear guard action. Then it would become a novelty – OH LOOK they still use that stupid stuff. Then people will marvel at all the damage it had done and it would go away.

This Indiana utility may have just put the final nail in coal’s coffin

The embers of the coal industry have been slowly fading in recent years, despite efforts by the Trump administration to reignite the flames.

But an announcement this week from a northern Indiana utility — in the heart of a state that ranks in the top 10 for both coal production and consumption — suggests the end may be nearer than some expect.

Why? Because it’s cheaper. A lot cheaper, they said, to the tune of more than $4 billion over a few decades. Still, those long-term savings might come with a short-term price. The utility is asking for a raise in its rates to upgrade infrastructure.

The Carbon Tax is long overdue nationally, though California’s seems to be chugging right along. But think how far we have come – worse yet, think how far down the tubes we must be that the Chicago Tribune, as an entity, is advocating for it. Read it and weep, either for joy or sadness.

A carbon tax that could put money in your pocket

Editorial Board Editorials reflect the opinion of the Editorial Board, as determined by the members of the board, the editorial page editor and the publisher.

July 3, 2018 5:20 p.m.

The indications of a warming world are numerous and hard to miss. Last year was the third-warmest year on record for both the planet and the United States — exceeded only by 2015 and 2016. In June, scientists reported that Antarctica has lost 3 trillion tons of ice since 1992 — yielding “enough water to cover Texas to a depth of nearly 13 feet,” the Associated Press reported.

The indications of inaction on the subject are also abundant and visible. Last year, Donald Trump pulled the United States out of the Paris agreement on greenhouse gas emissions. The Environmental Protection Agency has moved to ease regulations on power plants and motor vehicles that were integral to the Obama administration’s efforts to slow climate change.

Bipartisan action – once a normal response to environmental harms – is not on the agenda for Congress or the White House. But a growing group of farsighted pragmatists are nonetheless trying to find a middle ground between the entrenched adversaries.

All the capitalists care about is the money. So what if somebody dies making the power? So what if making the power kills someone? As long as they get their 100,000K profit or whatever it is. The numbers really have to mount before they even notice. Who cares if a “little person” dies, they were just taking up space anyway.

So my colleagues and I calculated the health impact of generating electricity through offshore wind turbines – which until now the U.S. has barely begun to do.

Greening the Grid

New England gets almost none of its electricity from burning coal and more than three-quarters of it from burning natural gas and operating nuclear reactors. The rest is from hydropower and from renewable energy, including wind and solar power and the burning of wood and refuse.

This is what it is like at the end of a power source. People can hardly wait to get away from coal and on to something else. I say, GOOD FOR THEM. Coal is no longer competitive. No matter how they try to stand in the way coal supporters, including Dotard in Chief, will always lose. Can you say, dust bin of history.

On Navajo land in Arizona, a coal plant and coal mine that have devastated the environment are being replaced by solar–with both enormous benefits and local drawbacks that can serve as a lesson for how the rest of the country will need to manage the transition to renewables.

In the desert near Arizona’s border with Utah on the Navajo Nation, a massive solar array built in 2017 now provides power for around 18,000 Navajo homes. Nearby, construction will begin later this year on a second solar plant. And on another corner of Navajo land, the largest coal plant west of the Mississippi River is preparing to close 25 years ahead of schedule, despite some last-minute attempts to save it.

“Those two [solar] plants really are the beginning of an economic transition,” says Amanda Ormond, managing director of the Western Grid Group, an organization that promotes clean energy.

The coal plant, called the Navajo Generating Station, was built in the 1970s to provide power to growing populations in Southern California, Arizona, and Nevada. A nearby coal mine supplies the power plant with coal. As recently as 2014, the coal plant wasn’t expected to close until 2044–a date negotiated with the EPA to reduce air pollution. But reduced demand for coal, driven both by economics and climate action, means that the plant is scheduled to close in 2019 instead. The coal mine, run by Peabody Energy, will be forced to follow.

The real important point from this article for me is that, ‘The die was cast around 1998, when GDP growth and electricity demand growth became “decoupled”’. In other words, for the last 2o years the utilities should have been investing in renewables and they did not. The point being that renewables are easier to turn “off” when you do not need them. If the utilities start investing heavily now in renewables they may survive. It is a horse race at this point.

Thanks to a combination of greater energy efficiency, outsourcing of heavy industry, and customers generating their own power on site, demand for utility power has been flat for 10 years, and most forecasts expect it to stay that way. The die was cast around 1998, when GDP growth and electricity demand growth became “decoupled”:

Really? No Bid. Nothing. We had experience in the mountains and no one else wanted the contract. That is all they have to say? A company from the Secretary of Interior’s hometown. Zinke had nothing to do with it? WHAT!

Small Montana firm lands Puerto Rico’s biggest contract to get the power back on

For the sprawling effort to restore Puerto Rico’s crippled electrical grid, the territory’s state-owned utility has turned to a two-year-old company from Montana that had just two full-time employees on the day Hurricane Maria made landfall.

The company, Whitefish Energy, said last week that it had signed a $300 million contract with the Puerto Rico Electric Power Authority to repair and reconstruct large portions of the island’s electrical infrastructure. The contract is the biggest yet issued in the troubled relief effort.

Whitefish said Monday that it has 280 workers in the territory, using linemen from across the country, most of them as subcontractors, and that the number grows on average from 10 to 20 people a day. It said it was close to completing infrastructure work that will energize some of the key industrial facilities that are critical to restarting the local economy.

The head of the EPA, Scott Pruitt, announced in Tennessee that the “War On Coal” was over. This during his announcement that the EPA was with drawing the Clean Power Plan proposed by the Obama Administration. What a joke this administration is. They accuse the former head of the EPA, Gina McCarthy , of picking winners and losers. Well guess what? They have already been picked. Coal lost.

Dallas Morning News Editorial

If there were any remaining doubts, the age of coal is over and the era of natural gas and renewables is officially here.

Luminant’s decision last week to shut its Monticello Power Plant near Mount Pleasant, one of Texas’ largest and dirtiest coal-fired electricity plants, is a prime example of this shift. The plant’s pending closure in January is a win for clean air and the result of the new economics of energy that renders coal-fired power plants like the Monticello facility cost-prohibitive relics.

We’re pleased that Luminant took this step after a year-long review of its operations. A decade ago, this editorial board helped lead the charge against the former TXU Corp.’s plan to build about a dozen coal-fired power plants in the state.

Consumers should come out ahead long term, utility says

Xcel Energy on Tuesday continued its shift away from coal, announcing an agreement to retire two of its three coal-burning units at the Comanche Generating Station in Pueblo while adding substantially more wind, solar and natural gas generation.

Xcel Energy will request competitive bids before the end of the year for 1,000 megawatts of additional wind, 700 megawatts of solar and 700 megawatts of natural gas power generation under its “Colorado Energy Plan.”

The state’s largest utility also said it will retire 660 megawatts of coal-generated power from Comanche Unit 1, built in 1973, and Comanche Unit 2, built in 1975. It will continue to operate the newer and cleaner coal-fired Unit 3, which came online in 2010 and has a capacity of 750 megawatts.

“It is really about the economics,” David Eves, president for Xcel Energy in Colorado, said of the retirements, which will take place before the end of 2022 and 2025. “From the company’s perspective, this plan is a response to our customers”

I have always said that the solution to coal and natural gas was to retrain those workers for green technologies and move them on. Here is a perfect example of a culture that controls its resources and could do just that. But they don’t get it. Wake up Navajos!

Competition from inexpensive natural gas generators means electricity from NGS is already more expensive than wholesale power prices, the utilities said in a release, a trend that’s not expected to reverse in coming years. The decision is the second major coal shuttering announcement in less than a month.

The deal announced this week aims to maintain employment at the plant for almost three years, while also preserving revenues for the Navajo and the Hopi tribes. It also allows the Navajo Nation or others to continue operating the plant beyond 2019, though the current group of owners will not be involved.